Has recession hit the U.S.? What does it mean for the Phils?

**gearhead** · January 14th, 2008 10:14 PM

Am not much of an economist so am wondering what your opinion on Merrill Lynch and Goldman Sachs confirming that the U.S. is now in recession will mean.

http://adage.com/article?article_id=123055

Some industries like real estate here for example rely on the U.S. market. How it will affect economies tied to the hip with the U.S. Like China?

**HIFI** · January 15th, 2008 12:34 AM

Originally Posted by gearhead

Am not much of an economist so am wondering what your opinion on Merrill Lynch and Goldman Sachs confirming that the U.S. is now in recession will mean.

http://adage.com/article?article_id=123055

Some industries like real estate here for example rely on the U.S. market. How it will affect economies tied to the hip with the U.S. Like China?

Obviously, US purchasing power will dip, and China will definitely feel the effects...lesser trade business to the US.

China will surely look for alternative markets, such as Europe, and the Middle East. They will also compete more aggresively against other countries...which is more bad news for us in the Philippines.

All in all, recession in the US may look good to us short-term (in fact we are feeling the effects now), but long-term...it's disastreous.

Of course....there is also this matter sa lower US Forex. But that's another topic.

**eddiebauer** · January 15th, 2008 01:57 AM

ano kaya mangyayari sa call center. may tatawag pa kaya

**HIFI** · January 15th, 2008 02:21 AM

Originally Posted by eddiebauer

ano kaya mangyayari sa call center. may tatawag pa kaya

As far as the US economy is concerned, I suppose little lang ang impact sa call centers dito. In fact, it's growing pa, since the US are constantly looking so cheaper labor deals....that's why they are outsourcing it na.

The greatest threat sa call centers now are India, and Eastern Europe. In a few years (say 5-10 years?), pag natuto mag english ang mga kalahi kong Instik, mayayari ang call centers dito sa Pinas.

To those who wants to migrate sa US to work? Wala kang makikitang trabahong matinong doon...except for nurses.

**explorer** · January 15th, 2008 07:25 AM

Originally Posted by HIFI

As far as the US economy is concerned, I suppose little lang ang impact sa call centers dito. In fact, it's growing pa, since the US are constantly looking so cheaper labor deals....that's why they are outsourcing it na..

you are assuming that companies that outsourced their call centers will continue to exist...what if the company in the US will go bankrupt?

**juntzo** · January 15th, 2008 08:37 AM

yes some of them may go bankrupt but there are a lot more that will stay afloat. these companies will survive by outsourcing to cheaper countries like the Phil. so still we will benefit.

**v6dreamer** · January 15th, 2008 09:16 AM

Recession in the U.S is come and go. Not even the great depression on the early 1920 can shake down the U.S economy to bring down its knee. Who knows what's the White House or federal govt. thinking.

**uls** · January 15th, 2008 09:53 AM

di pa recession ang US. Kelangan 2 successive quarters of negative economic growth para tawagin na recession.

di pa naman negative growth ang US economy. Slowing down palang.

Dami analysts nagsasabi magrerecession daw ang US. Meron pa nga nagsasabi recession na daw.

Anyway, ang effect nyan sa atin is hihina ang exports natin.

Good effect is bababa ang oil price. Coz the US, being the world's biggest oil consumer, will consume less oil.

**HIFI** · January 15th, 2008 10:03 AM

Originally Posted by uls

di pa recession ang US. Kelangan 2 successive quarters of negative economic growth para tawagin na recession.

di pa naman negative growth ang US economy. Slowing down palang.

Nevertheless, the signs of recession are beginning to show. BTW, I agree to your actual definition of "recession".

Originally Posted by uls

Anyway, ang effect nyan sa atin is hihina ang exports natin.

Good effect is bababa ang oil price. Coz the US, being the world's biggest oil consumer, will consume less oil.

Oil prices...bababa? Unlikely. Again, the problem is China. They are buying oil in an alarming rate, pushing prices to record highs. This is the reason why it's been high this past couple of years, and there is no end in sight. Daming pera doon ngayon.

**xoom** · January 15th, 2008 10:09 AM

my analogy to this is this: kapag ikaw ay nababankrupt na, the logical thing to do is maghagilap at hugutin ang mga sources of assets mo to keep you afloat and US has billions of assets and interests here.

Kapag humatsing ang US, expect the world to catch cold. Pero sabi nga ni v6dreamer, recession in the US come and go. Ika nga ni Pacman, "bilog ang mundo, pre". Being the only superpower in the world, wala ng mas aastig pa kay Uncle Sam.